Senate Advances Housing Bill With Temporary CBDC Ban

A bipartisan housing package moving through the Senate includes a temporary ban on a Federal Reserve CBDC, pulling the digital dollar debate into major legislation.

The U.S. Senate has advanced a sweeping bipartisan housing package that also includes a temporary ban on a central bank digital currency. Lawmakers voted 84 to 6 to move forward with the 21st Century ROAD to Housing Act, clearing a key procedural hurdle and setting up full debate.

Tucked into the 303 page bill is a provision that would bar the Federal Reserve from issuing or creating a CBDC through Dec. 31, 2030. The language states the Fed may not launch a digital dollar directly or indirectly through financial institutions. It carves out an exception for private, open, dollar denominated digital currencies that preserve the privacy protections of physical cash.

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The White House quickly backed the bill, saying the president would sign it in its current form and highlighting concerns that a CBDC could threaten personal privacy and liberty.

Fed officials have previously said any digital dollar would require explicit congressional approval. For now, the debate over a U.S. CBDC has been pulled squarely into mainstream legislation.